This application discloses an invention related, generally and in various embodiments, to systems and methods for determining optimal utilization levels for fixed capacity assets. For a utility provider, decisions regarding utilization of fixed capacity assets are undertaken based on factors such as cost (e.g., asset cost and labor cost) and delivery times. Traditionally, cost has been treated as the deciding factor on whether the operating model of a utility is financially sound because the profitability of an asset is a quantifiable measurement of performance. Timing aspects, however, are important because having sufficient capacity is critical for a utility provider.
Often, a utility provider will monitor the operating efficiency of assets to determine whether purchased assets are justifying their costs and/or whether additional assets should be purchased. For example, a utility provider may establish target utilization for a particular class of asset. From the standpoint of the utility provider, the target is intended to avoid underutilization of existing assets while providing a safeguard with respect to remaining capacity.
In order to achieve target utilization, the utility provider may implement certain policies and requirements. For example, the utility provider may require allocation and/or reallocation of users to assets perceived to be underutilized and from assets approaching the target utilization.
Superficially, a utilization target may appear to seek a reasonable balance between asset cost and the risk of insufficient capacity. However, a method of determining a utilization level based only on factors such as cost and delivery times neglects important factors prevalent in a fixed capacity system.